Borrower Eligibility :
Borrower must meet the following requirements:
• Occupy the residence as their primary residence.
• Non-occupant co-borrowers/cosigners are not allowed.
• Within ReachTM products are ineligible in the state of Washington.
• Income limit is 140% of Area Median Income (AMI) or maximum allowable by FHA. Limit is based on qualifying income used for the transaction, not household income. For AMI refer to Income Limits
• FICO 620 ≥ with AUS and DTI not exceeding 50.00%: • Must follow AUS findings.
• 12 months housing history is required, borrower living rent free acceptable. • Borrowers who indicate they are living rent-free – LHFS will require verification from the property owner where they are residing that the Borrower has been living rent-free and the amount of time the Borrower has been living rent free.
• FICO 620 ≥ with Manual Underwrite and DTI not exceeding 47.00%: • Follow manual FHA guidelines including front and back end ratios.
• 1 compensating factor must be met.
• 12 months housing history is required, borrower living rent free acceptable. • Borrowers who indicate they are living rent-free – LHFS will require verification from the property owner where they are residing that the Borrower has been living rent-free and the amount of time the Borrower has been living rent free.
• FICO 680 ≥ with Manual Underwrite and DTI of 47.01% to 50.00%: • Minimum FICO 680 required
• Must follow manual underwriting FHA guidelines including front and back end ratios.
• 2 compensating factors must be met.
• Max 50.00% DTI (borrower living rent free not allowed).
• 12 months housing history is required and must be documented.
• At least one of the borrowers to complete the simple and easy to use MGIC Homebuyer Education or similar course. (https://homebuyers.mgic.com)
DOWN PAYMENT AND CLOSING COST ASSISTANCE
Grant Funds available, either 3% or 4.5% of the First Mortgage Loan amount.
Grant funds may be used for down payment and/or closing costs. There must be no cash back to the borrower from the Grant proceeds. No funds may go to the borrower at closing other than the initial escrow deposit.
MORTGAGE LOAN TYPES AND TERMS
• 30-year fixed term with full amortization.
• 203(b) in accordance with FHA guidelines.
• 1-4 units allowed.
• Cooperative housing (co-op) not eligible.
• Manufactured housing eligible under the Within ReachTM FHA MH Program.